Transparency in wages – the talent retention strategy

Fairness and transparency in wages are always the top concerns of employees in today’s society. Followed by a series of problems for businesses: how to retain talented people and attract young human resources. 

Transparency in wages – the talent retention strategy

Non-transparency in salary – the cause of “separation”

“Financial security” – stable income and receiving reasonable, timely compensation and benefits is always one of the top priorities of employees. Therefore, the appearance of unnecessary errors in the pay period is easy to cause the workforce to lose motivation, reduce performance, work quality, or even lead to “wrong” outcomes: “one miss, one staff”. 

Despite understanding these consequences, many companies still repeat mistakes, lose talented people just because they are not transparent about salary and bonus. According to a survey by Beqom in 2022, up to 60% of 1000 employees do not hesitate to join a company that pays more transparently than the current company. This shows that, when transparency is one of the top priorities of employees, human resources are always ready to change jobs if the company or business is not clear in how to calculate salary and bonus. Not only losing the trust of employees, lack of salary transparency also makes the company’s internal “tired” and may face legal problems. So, what is the solution for businesses to overcome these situations?

Non-transparency in salary – the cause of “separation”

Effective solutions for businesses

The transparent payment of wages requires businesses to have enough resources to handle the huge administrative workload including: keeping labor records; manual data processing; comply with and pay labor tax in accordance with the law; data security and salary fraud prevention… To solve the above problems, businesses can choose from many different solutions, which can start from within the business or can start by receiving support from an outside agency. Here are some typical solutions businesses can refer to.

Invest in a basic payroll process

Invest in a basic payroll process

Currently, many businesses have considered investing in a methodical payroll process as a way to take advantage of human resources, while improving and limiting errors in the salary and bonus process. In this way, the enterprise can not only use internal resources, but also can maintain it for a long time if the payroll process is invested in a methodical and reasonable way. However, this is still one of the “difficult problems” for small and medium enterprises. There are countless related problems surrounding businesses of this size such as: lack of personnel, insufficient financial capacity to invest in recruitment, skills training and additional technology solutions… Meanwhile, large enterprises are afraid to spend a lot of effort building and maintaining a payroll system instead of focusing on developing the company’s strategy. Therefore, the current investment in a basic payroll process is still quite inadequate for some businesses.

Outsourced payroll service

Outsourced payroll service

Another solution proposed that can overcome the above problems of businesses is to use outsourced payroll services. According to the 2021 EY payroll survey, 69% of organizations said they used outsourced services for the human resources department (HR) in general and payroll work in particular, an increase of 12% compared to 2019. It can be said that combining HR with payroll services is a new trend of international businesses. For employees, outsourced salary calculation ensures a transparent salary policy, helping them feel secure to work and understand the value of their contributions. At the same time, HR also has more time to care, listen to career orientation and invest in helping employees improve professional skills. Besides, in order to increase the accuracy and rigor in human resource information management, businesses have started to apply technology to automate the payroll process. This helps businesses handle huge workloads gently and efficiently, while ensuring transparency and clarity. Going beyond “fulfilling the tasks”, a reliable service provider can also promptly answer questions about salary, insurance, employee benefits, and advise on new salary and bonus trends. and update legal regulations on labor law for enterprises. These factors contribute to increasing the connection between enterprises and employees. On the other hand, the high cost is a shortcoming that makes outsourced payroll services still not yet applied and maintained in some small and medium enterprises.

terra Payroll – Outsourced payroll service with extremely reasonable fees

terra Payroll provides a group of total payroll solutions for businesses, used to integrate with the Human Resource Management System – terra HR System. When using terra Payroll outsourcing service, all employees’ information, forms, and payroll will be updated and stored on the same online platform, ensuring confidentiality, integrity and transparency in the process. personnel information management.

In particular, to solve the cost concerns when making outsourcing decisions of businesses, besides combining payroll and technology to help businesses handle extremely light and efficient work, terra also offers extremely reasonable fees for businesses when using the outsourced payroll service terra Payroll.

In conclusion, the above solutions all have their own advantages and disadvantages and satisfy the conditions of each different business model. In general, both solutions contribute to improving transparency in the process of calculating salaries and bonuses between enterprises and employees.